Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Biometrics applications: gate keeping

Identity has to do with "place". In less mobile societies, the place where a person finds him/herself tells us something about his/her identity. In pre-industrial times, gatekeepers had the function to control access of people to particular places, i.e. the gatekeepers function was to identify people and then decide whether somebody's identity would allow that person to physically occupy another place - a town, a building, a vehicle, etc.

In modern societies, the unambiguous nature of place has been weakened. There is a great amount of physical mobility, and ever since the emergence and spread of electronic communication technologies there has been a "virtualisation" of places in what today we call "virtual space" (unlike place, space has been a virtual reality from the beginning, a mathematical formula) The question as to who one is no longer coupled to the physical abode. Highly mobile and virtualised social contexts require a new generation of gatekeepers which biometric technology aims to provide.

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0 - 1400 A.D.

150
A smoke signals network covers the Roman Empire

The Roman smoke signals network consisted of towers within a visible range of each other and had a total length of about 4500 kilometers. It was used for military signaling.
For a similar telegraph network in ancient Greece see Aeneas Tacitus' optical communication system.

About 750
In Japan block printing is used for the first time.

868
In China the world's first dated book, the Diamond Sutra, is printed.

1041-1048
In China moveable types made from clay are invented.

1088
First European medieval university is established in Bologna.

The first of the great medieval universities was established in Bologna. At the beginning universities predominantly offered a kind of do-it-yourself publishing service.

Books still had to be copied by hand and were so rare that a copy of a widely desired book qualified for being invited to a university. Holding a lecture equaled to reading a book aloud, like a priest read from the Bible during services. Attending a lecture equaled to copy a lecture word by word, so that you had your own copy of a book, thus enabling you to hold a lecture, too.

For further details see History of the Idea of a University, http://quarles.unbc.edu/ideas/net/history/history.html

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Biometric applications: surveillance

Biometric technologies are not surveillance technologies in themselves, but as identification technologies they provide an input into surveillance which can make such as face recognition are combined with camera systems and criminal data banks in order to supervise public places and single out individuals.

Another example is the use of biometrics technologies is in the supervision of probationers, who in this way can carry their special hybrid status between imprisonment and freedom with them, so that they can be tracked down easily.

Unlike biometric applications in access control, where one is aware of the biometric data extraction process, what makes biometrics used in surveillance a particularly critical issue is the fact that biometric samples are extracted routinely, unnoticed by the individuals concerned.

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Biometrics applications: physical access

This is the largest area of application of biometric technologies, and the most direct lineage to the feudal gate keeping system. Initially mainly used in military and other "high security" territories, physical access control by biometric technology is spreading into a much wider field of application. Biometric access control technologies are already being used in schools, supermarkets, hospitals and commercial centres, where the are used to manage the flow of personnel.

Biometric technologies are also used to control access to political territory, as in immigration (airports, Mexico-USA border crossing). In this case, they can be coupled with camera surveillance systems and artificial intelligence in order to identify potential suspects at unmanned border crossings. Examples of such uses in remote video inspection systems can be found at http://www.eds-ms.com/acsd/RVIS.htm

A gate keeping system for airports relying on digital fingerprint and hand geometry is described at http://www.eds-ms.com/acsd/INSPASS.htm. This is another technology which allows separating "low risk" travellers from "other" travellers.

An electronic reconstruction of feudal gate keeping capable of singling out high-risk travellers from the rest is already applied at various border crossing points in the USA. "All enrolees are compared against national lookout databases on a daily basis to ensure that individuals remain low risk". As a side benefit, the economy of time generated by the inspection system has meant that "drug seizures ... have increased since Inspectors are able to spend more time evaluating higher risk vehicles".

However, biometric access control can not only prevent people from gaining access on to a territory or building, they can also prevent them from getting out of buildings, as in the case of prisons.

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Dos and donts of the data body economy

Do

Don't

use plastic money





pay cash





tansfer money through bank

shop online





buy in small independent shops

consume life style products

display an unpredictable consumer behaviour





complete registration forms





refuse to register or provide erroneous data

have an insurance against everything









accept risk

constantly use mobile communication equipment





prefer face-to-face communication

drive a car equipped with a GPS terminal





use other means of transportation

willingly provide personal information





have privacy concerns



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How the Internet works

On the Internet, when you want to retrieve a document from another computer, you request a service from this computer. Your computer is the client, the computer on which the information you want to access is stored, is called the server. Therefore the Internet's architecture is called client-server architecture.

A common set of standards allows the exchange of data and commands independent from locations, time, and operating systems through the Internet. These standards are called communication protocols, or the Internet Protocol Suite, and are implemented in Internet software. Sometimes the Internet Protocol Suite is erroneously identified with TCP/IP (Transmission Control Protocol / Internet Protocol).

Any information to be transferred is broken down into pieces, so-called packets, and the Internet Protocol figures out how the data is supposed to get from A to B by passing through routers.

Each packet is "pushed" from router to router via gateways and might take a different route. It is not possible to determine in advance which ways these packets will take. At the receiving end the packets are checked and reassembled.

The technique of breaking down all messages and requests into packets has the advantage that a large data bundle (e.g. videos) sent by a single user cannot block a whole network, because the bandwidth needed is deployed on several packets sent on different routes. Detailed information about routing in the Internet can be obtained at http://www.scit.wlv.ac.uk/~jphb/comms/iproute.html.

One of the Internet's (and of the Matrix's) beginnings was the ARPANet, whose design was intended to withstand any disruption, as for example in military attacks. The ARPANet was able to route data around damaged areas, so that the disruption would not impede communication. This design, whith its origin in strategic and military considerations, remained unchanged for the Internet. Yet the design of the ARPANet's design cannot be completely applied to the Internet.

Routing around depends on the location of the interruption and on the availability of intersecting points between networks. If, for example, an E-mail message is sent from Brussels to Athens and in Germany a channel is down, it will not affect access very much, the message will be routed around this damage, as long as a major Internet exchange is not affected. However, if access depends on a single backbone connection to the Internet and this connection is cut off, there is no way to route around.

In most parts of the world the Internet is therefore vulnerable to disruption. "The idea of the Internet as a highly distributed, redundant global communications system is a myth. Virtually all communications between countries take place through a very small number of bottlenecks, and the available bandwidth isn't that great," says Douglas Barnes. These bottlenecks are the network connections to neighboring countries. Many countries rely on a one single connection to the Net, and in some places, such as the Suez Canal, there is a concentration of fiber-optic cables of critical importance.

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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Abolition of Resale Price Maintenance

The London-based Institute for Economic Affairs (AEI) from its beginning undertook an extensive publishing program to push forward its free-market ideology. Among its publications was one particular paper, which had a direct and immediate political impact. Published in 1960 "Resale Price Maintenance and Shoppers' Choice" by Basil Yamey argued for the abolition of Resale Price Maintenance, which by fixing prices in shops prevented large stores from necessarily under-cutting smaller shops. Yamey argued that a free market in shop prices would save the shoppers £180,000,000 a year, and prices would fall by five percent.

The publication of Yamey's paper was timed to coincide with a period of public debate on the subject to ensure maximum impact, and Yamey's suggestions were taken up by the incumbent Conservative Government. Although the Abolition of Resale Price Maintenance by Edward Heath in 1964, can not only be attributed to Yamey's paper, it for sure had a substantial impact.

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Online data capturing

Hardly a firm today can afford not to engage in electronic commerce if it does not want to be swept out of business by competitors. "Information is everything" has become something like the Lord's prayer of the New Economy. But how do you get information about your customer online? Who are the people who visit a website, where do they come from, what are they looking for? How much money do they have, what might they want to buy? These are key questions for a company doing electronic business. Obviously not all of this information can be obtained by monitoring the online behaviour of web users, but there are always little gimmicks that, when combined with common tracking technologies, can help to get more detailed information about a potential customer. These are usually online registration forms, either required for entry to a site, or competitions, sometimes a combination of the two. Obviously, if you want to win that weekend trip to New York, you want to provide your contact details.

The most common way of obtaining information about a user online is a cookie. However, a cookie by itself is not sufficient to identify a user personally. It merely identifies the computer to the server by providing its IP number. Only combined with other data extraction techniques, such as online registration, can a user be identified personally ("Register now to get the full benefit of xy.com. It's free!")

But cookies record enough information to fine-tune advertising strategies according to a user's preferences and interests, e.g. by displaying certain commercial banners rather than others. For example, if a user is found to respond to a banner of a particular kind, he / she may find two of them at the next visit. Customizing the offers on a website to the particular user is part of one-to-one marketing, a type of direct marketing. But one-to-one marketing can go further than this. It can also offer different prices to different users. This was done by Amazon.com in September 2000, when fist-time visitors were offered cheaper prices than regular customers.

One-to-one marketing can create very different realities that undermine traditional concepts of demand and supply. The ideal is a "frictionless market", where the differential between demand and supply is progressively eliminated. If a market is considered a structure within which demand / supply differentials are negotiated, this amounts to the abolition of the established notion of the nature of a market. Demand and supply converge, desire and it fulfilment coincide. In the end, there is profit without labour. However, such a structure is a hermetic structure of unfreedom.

It can only function when payment is substituted by credit, and the exploitation of work power by the exploitation of data. In fact, in modern economies there is great pressure to increase spending on credit. Using credit cards and taking up loans generates a lot of data around a person's economic behaviour, while at the same restricting the scope of social activity and increasing dependence. On the global level, the consequences of credit spirals can be observed in many of the developing countries that have had to abandon most of their political autonomy. As the data body economy advances, this is also the fate of people in western societies when they are structurally driven into credit spending. It shows that data bodies are not politically neutral.

The interrelation between data, profit and unfreedom is frequently overlooked by citizens and customers. Any company in a modern economy will apply data collecting strategies for profit, with dependence and unfreedom as a "secondary effect". The hunger for data has made IT companies eager to profit from e-business rather resourceful. "Getting to know the customer" - this is a catchphrase that is heard frequently, and which suggests that there are no limits to what a company may want to about a customer. In large online shops, such as amazon.com, where customer's identity is accurately established by the practice of paying with credit cards, an all business happens online, making it easy for the company to accurately profile the customers.

But there are more advanced and effective ways of identification. The German company Sevenval has developed a new way of customer tracking which works with "virtual domains". Every visitor of a website is assigned an 33-digit identification number which the browser understands as part of the www address, which will then read something like http://XCF49BEB7E97C00A328BF562BAAC75FB2.sevenval.com. Therefore, this tracking method, which is advertised by Sevenval as a revolutionary method capable of tracking the exact and complete path of a user on a website, can not be simple switched off. In addition, the method makes it possible for the identity of a user can travel with him when he / she visits one of the other companies linked to the site in question. As in the case of cookies, this tracking method by itself is not sufficient to identify a user personally. Such an identification only occurs once a customer pays with a credit card, or decides to participate in a draw, or voluntarily completes a registration form.

Bu there are much less friendly ways of extracting data from a user and feeding the data body. Less friendly means: these methods monitor users in situations where the latter are likely not to want to be monitored. Monitoring therefore takes place in a concealed manner. One of these monitoring methods are so-called web bugs. These are tiny graphics, not more than 1 x 1 pixel in size, and therefore invisible on a screen, capable of monitoring an unsuspecting user's e-mails or movements on a website. Leading corporations such as Barnes and Noble, eToys, Cooking.com, and Microsoft have all used web bugs in advertising campaigns. Richard Smith has compiled a web bugs FAQ site that contains detailed information and examples of web bugs in use.

Bugs monitoring users have also been packaged in seemingly harmless toys made available on the Internet. For example, Comet Systems offers cursor images which have been shown to collect user data and send them back to the company's server. These little images replace the customary white arrow of a mouse with a little image of a baseball, a cat, an UFO, etc. large enough to carry a bug collecting user information. The technology is offered as a marketing tool to companies looking for a "fun, new way to interact with their audience".

The cursor image technology relies on what is called a GUID (global unique identifier). This is an identification number which is assigned to a customer at the time of registration, or when downloading a product. Many among the online community were alarmed when in 1999 it was discovered that Microsoft assigned GUIDS without their customer's knowledge. Following protests, the company was forced to change the registration procedure, assuring that under no circumstances would these identification numbers be used for tracking or marketing.

However, in the meantime, another possible infringement on user anonymity by Microsoft was discovered, when it as found out that MS Office documents, such as Word, Excel or Powerpoint, contain a bug that is capable of tracking the documents as they are sent through the net. The bug sends information about the user who opens the document back to the originating server. A document that contains the bug can be tracked across the globe, through thousands of stopovers. In detailed description of the bug and how it works can be found at the Privacy Foundation's website. Also, there is an example of such a bug at the Privacy Center of the University of Denver.

Of course there are many other ways of collecting users' data and creating appropriating data bodies which can then be used for economic purposes. Indeed, as Bill Gates commented, "information is the lifeblood of business". The electronic information networks are becoming the new frontier of capitalism.

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Data body mealplan

Here is an example of how the data body is fed by routine day-to-day activities, a data body meal plan:

Breakfast: phone calls, drive GPS (global positioning system) equipped car, emerge from surveillance camera equipped subway, go online, send E-mails, complete online registration forms, receive faxes

Lunch: pay lunch with credit card, use your customer card when shopping, use mobile phone, pass through biometric access controls, use smart card

Afternoon snack: visit doctor, file insurance claim

Dinner: respond to TV commercials, complete income tax form, visit chat rooms, use free web mail. Programme phone wake-up call.

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Scientology

Official name Church Of Scientology, religio-scientific movement developed in the United States in the 1950s by the author L. Ron Hubbard (1911-86). The Church of Scientology was formally established in the United States in 1954 and was later incorporated in Great Britain and other countries. The scientific basis claimed by the church for its diagnostic and therapeutic practice is disputed, and the church has been criticized for the financial demands that it makes on its followers. From the 1960s the church and various of its officials or former officials faced government prosecutions as well as private lawsuits on charges of fraud, tax evasion, financial mismanagement, and conspiring to steal government documents, while the church on the other hand claimed it was being persecuted by government agencies and by established medical organizations. Some former Scientology officials have charged that Hubbard used the tax-exempt status of the church to build a profitable business empire.

INDEXCARD, 1/7
 
Institute for Policy Studies

IPS, based in Washington D.C. is a multi-issue, nationally focused think tank aiming at the promotion of economic redistribution, full employment, ecological restoration, democratic participation, community empowerment, and global nonviolence. IPS pursues its mission through the following eight strategies: activism; scholarship; public debate; political advocacy; model building; memory; training; and global alliances.

INDEXCARD, 2/7
 
François Duvalier

b. April 14, 1907, Port-au-Prince, Haiti
d. April 21, 1971, Port-au-Prince

By name PAPA DOC, president of Haiti whose 14-year regime was of unprecedented duration in that country. A supporter of President Dumarsais Estimé, Duvalier was appointed director general of the National Public Health Service in 1946. He was appointed underminister of labour in 1948 and the following year became minister of public health and labour, a post that he retained until May 10, 1950, when President Estimé was overthrown by a military junta under Paul E. Magloire, who was subsequently elected president. By 1954 he had become the central opposition figure and went underground. Duvalier was elected president in September 1957. Setting about to consolidate his power, he reduced the size of the army and organized the Tontons Macoutes ("Bogeymen"), a private force responsible for terrorizing and assassinating alleged foes of the regime. Late in 1963 Duvalier moved further toward an absolutist regime, promoting a cult of his person as the semi divine embodiment of the Haitian nation. In April 1964 he was declared president for life. Although diplomatically almost completely isolated, excommunicated by the Vatican until 1966 for harassing the clergy, and threatened by conspiracies against him, Duvalier was able to stay in power longer than any of his predecessors.

INDEXCARD, 3/7
 
Public Relations Consultants Association (PRCA)

The PRCA was formed in November 1969 as an association limited by guarantee of up to £5 per member and therefore has no share capital. The PRCA tries to encourage and promote the advancement of companies and firms engaged in public relations consultancy..

INDEXCARD, 4/7
 
Sony Corporation

Japanese SONY KK, major Japanese manufacturer of consumer electronics products. Headquarters are in Tokyo. The company was incorporated in 1946 and spearheaded Japan's drive to become the world's dominant consumer electronics manufacturer in the late 20th century. The company was one of the first to recognize the potential of the consumer videotape market. In 1972 it formed an affiliate to market its Betamax colour videocassette system. In 1987-88 Sony purchased the CBS Records Group from CBS Inc., thus acquiring the world's largest record company. It followed that purchase with the purchase in 1989 of Columbia Pictures Entertainment Inc.

INDEXCARD, 5/7
 
The Spot

http://www.thespot.com/

http://www.thespot.com/
INDEXCARD, 6/7
 
Edward Heath

Conservative prime minister of Great Britain from 1970 to 1974. Of modest origins, Heath was educated at Oxford, where he was elected president of the University Conservative Association in 1937. In 1938, as chairman of the Federation of University Conservative Associations and president of the Oxford Union, he actively opposed the policy of appeasement toward Nazi Germany pursued by the Conservative prime minister Neville Chamberlain. He served in the army during World War II, worked in the Ministry of Civil Aviation in 1946-47, was editor of the Church Times from January 1948 to October 1949, and then became a member of a merchant banking firm.

INDEXCARD, 7/7